When you first take out a mortgage in the UK, it usually comes with an initial fixed period, often 2, 3, or 5 years. Once that ends, your mortgage automatically moves onto the lender’s Standard Variable Rate (SVR). For most foreign nationals, this is a problem because SVRs are usually much higher than fixed rates. This means your monthly payments could increase by hundreds of pounds.
That is where remortgaging comes in. Remortgaging means switching onto a new deal, either with your current lender or with a different one. For foreign nationals, there are some extra factors to think about compared to British citizens.
Why Remortgaging Matters for Foreign Nationals
- Avoid higher payments. Moving onto the SVR can add £200 to £400 per month, and sometimes more.
- Better long term planning. Securing another fixed rate deal gives you certainty over your monthly costs.
- Chance to borrow more. If your income has increased or your property has risen in value, remortgaging may allow you to raise additional funds.
What Lenders Look At During Remortgage Applications
Even if you already own a UK property, lenders will still reassess your situation when you remortgage. For foreign nationals, this usually means:
- Residency and Visa Status
- Many lenders require at least 12 to 24 months left on your current visa.
- If you have since gained Indefinite Leave to Remain (ILR), you will usually have access to the widest choice of lenders.
- Skilled Worker, Spouse, Health and Care, and BNO visas are among the most commonly accepted for remortgages.
- Many lenders require at least 12 to 24 months left on your current visa.
- Equity in the Property
- Instead of a deposit, lenders now look at equity, which is the portion of the home you own.
- The more equity you have, the better your remortgage options.
- Typically:
- 5 to 10 percent equity: limited options, often higher rates.
- 20 percent equity or more: access to the most competitive rates.
- 5 to 10 percent equity: limited options, often higher rates.
- Instead of a deposit, lenders now look at equity, which is the portion of the home you own.
- Income and Affordability
- Employed: Payslips (usually last 3 months) and bank statements.
- Self employed: At least 2 years of tax records. Some lenders accept 1 year if you have ILR.
- Multiple jobs or foreign income may be accepted, but documentation must be clear and consistent.
- Employed: Payslips (usually last 3 months) and bank statements.
- Credit History
- Lenders will check your UK credit profile.
- If you have built a good UK credit record since first taking out your mortgage, this can improve your options.
- Lenders will check your UK credit profile.
Missed payments or high unsecured debt may reduce the lenders available.
Common Challenges for Foreign Nationals
- Visa renewals. If your visa is due to expire soon, some lenders may refuse an application.
- Foreign income. Not all lenders accept income paid in foreign currencies.
- Limited lender pool. Fewer lenders are willing to work with foreign nationals, so specialist advice is often needed.
Final Thoughts
For foreign nationals, remortgaging is not just about saving money. It is about proving to lenders that your visa, income, and credit status make you a safe borrower. The good news is that with the right preparation and the right lender, remortgaging is often as achievable as your first mortgage, and sometimes even easier.
At First Time Finance, we specialise in helping foreign nationals remortgage smoothly, avoid costly SVR payments and secure the most suitable deals.
Ready to remortgage? Book a mortgage call and we will check your eligibility before your fixed term ends.
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